The Survival Of Small And Medium Sized Textile Enterprises Is Affected By Rising Costs, And The Difficulties Are Highlighted.

With the increase of international and domestic economic fluctuations and the cost of production factors,

The dilemma is also becoming increasingly prominent.

The survey found that in a variety of constraints affecting the development of small and micro enterprises, the pressure of rising costs makes small and micro enterprises most embarrassing: on the one hand, enterprises should protect market orders at all costs; on the other hand, they are also faced with the survival crisis squeezed by profit margins.

How far can small and micro enterprises struggling in the cracks go?

Rising costs are at the forefront of difficulties.

The investigation team conducted a field survey and questionnaire survey on the survival of 113 small and micro enterprises in six provinces, including Zhejiang, Guangdong, Shandong, Liaoning, Hunan and Sichuan, and found that the biggest problem facing the small and micro enterprises is the rising cost. First, the labor costs rise, accounting for 69.6%. Secondly, raw materials and other production costs rise, accounting for 50%, and the tax burden is too heavy, accounting for 45.1%.

In addition, financing difficulties and policy support are not enough, which are 38.2% and 31.4% respectively.

Combined with the size of enterprises, the number of enterprises in the 151 to 300 people thinks that

And other production costs rise (92.9%) is the primary problem, followed by rising labor costs (78.6%) and heavy tax burden (64.3%).

The number of enterprises with less than 150 people thinks that labor cost is ranked first among many problems, followed by the rising cost of raw materials and excessive tax burden.

From the point of view of the region, the factors affecting the operation of enterprises in different regions are different.

In the eastern coastal area, labor force, raw materials and RMB appreciation are the three most influential factors; and more than half of the Midwest enterprises are in debt management. In addition to the pressure of rising costs, financing is the biggest problem, and their operating rate, employment rate and profit rate have declined to varying degrees.

This was further confirmed by reporters in Sichuan.

Sichuan small and micro enterprises from 1 to May only 60% of the operating rate, nearly half of the small and micro enterprises net profit fell.

Among the various factors that affect the operation of small and micro enterprises, it is considered that nearly 6 months have accounted for nearly half of the increase in employees' wages, which has increased by nearly 40% in 2011.

Huang Donghong, director of Hunan SME Bureau, also stressed the problem when he briefed reporters on the survival of small and micro enterprises in Hunan.

He said that the main difficulty of Hunan's small and micro enterprises is the rapid rise in production costs, including raw materials and employment.

Employment increased by 20% to 30%, some even as high as 50%, and the entire raw material was also growing at a high level.

Moreover, the price increase of upstream raw materials is far higher than that of products.

Another is financing difficulties, financing is expensive, taxes and fees are heavy.

"We have done a survey, and the tax burden of SMEs now exceeds the tax burden level of all enterprises, about 6% to 8%.

At present, the profit margin of enterprises is generally around 5%.

That is to say, many SMEs are facing the danger of being eliminated. "

Huang Donghong said.

From the results of field investigation and sampling survey of the investigation group, the difficulties of small and micro enterprises are basically the same. Among them, human resources, raw materials, pportation, taxation and financing are the main bottlenecks affecting the development of small and micro enterprises, and it is very likely that they will continue to rise.

Multiple factors should not be overlooked.

High cost of labor, expensive raw materials, high circulation cost, heavy tax burden, and difficult financing are the biggest problems facing small and micro enterprises.

In this interview, the investigation team has learned from many business owners that these factors cause different difficulties to different industries. Some highlight some factors. Some are stacked by many factors. However, no matter whether they are facing serious difficulties, they are fatal to small and micro enterprises with insufficient fund accumulation, low brand added value and weak risk tolerance capability.

From the cost of raw materials, the enterprises visited, especially machinery, building materials, textiles, clothing and apparel, shoes and leather, furniture, general merchandise, consumer goods, catering, processing and customization, are affected by the price fluctuation of raw materials.

{page_break}

May 28th, Wenzhou, Zhejiang Province

The director of the limited company, Fang Chong Hai, told our reporter that "for our footwear enterprises, raw materials account for about 50% of the total cost.

This year, raw materials have gone up by 20%, and the price of individual resource based materials has doubled or so.

Fang Chonghai said, this is very helpless, raw materials are affected by the international and domestic market fluctuations, but this is not the government and enterprises can control.

Zhang Wenjie, general manager of Guangzhou Hao Yu garment and Textile Co., Ltd., is also impressed by the pressure brought by the price rise of raw materials.

"Domestic cotton yarn prices have gone up very much. Many of our orders, 80% of the orders have basically been canceled.

Cotton yarn is now about 20 thousand yuan / ton, although the price at the end of the year has come down, but the impact of the current European debt crisis is still quite large.

In May 28th, Zhang Wenjie spoke to our reporter about the pressure.

Wang Qiu, general manager of Dalian New Development Zone Xin Liang Building waterproof company, also told the reporter's interview that the level of raw materials climbed.

"In recent years, materials have gone up badly, for example, our building materials industry, roofing waterproof, 10 square meters ago only seven or eight yuan, now can reach 30 yuan; in recent years, oil prices skyrocketing, many asphalt containing material prices will follow the price rise, our two major materials of oleic acid, the price also increased two times.

The rising price of raw materials has forced our own products to rise.

The coconut oil produced by us is at least 6000 yuan a ton, and now it is 18000 yuan per ton. The liquid level of the house we sell is sold over 4000 yuan per ton in 1994, and this year it has to rise to 5000 to 6000 yuan.

Zhejiang Huada aluminum and Magnesium Industry Co., Ltd. is an aluminum processing enterprise. The cost of raw materials is high, which accounts for 80% of the total cost. Chen Yushun, general manager of the company, lamented to reporters: the aluminum material fluctuated every day. According to the floating price announced every day by the Shanghai metal trading network, the order price was determined according to the difficulty of the customers' products, the processing cost of each ton of aluminum profile was 3500 yuan, and the processing cost of each ton was 4000 yuan to 5000 yuan.

Pricing is pparent, there is no bargaining, profit margins are very small, mainly to earn processing fees.

Raw material prices are unstable, which not only increases the operating costs of enterprises, but also affects the owners' judgment of the market.

In May 29th, Mr. Xia, chairman of a valve company in Zhejiang, told reporters that the biggest problem we face now is the rising cost of labor and raw materials.

The rise and fall of raw materials is hard to grasp.

For example, we need titanium and other special materials for valve processing. At the beginning of this year, the price increase has dropped by 20% recently. The reason why the drop is so severe is that the national economy is stagnant and the demand for raw materials is also decreasing.

Raw materials account for 60% to 70% of our total cost, and valve industry profits are generally not high and profit is about 4%.

The price increase of raw materials is beyond control and can only rise.

Li Songlin, chairman of Zhejiang Feng Ye Group Co., Ltd., is deeply impressed by the impact of fluctuations in raw materials.

In June 3rd, he told reporters, "the cost of raw materials in other industries is rising, and metal materials, especially non-ferrous metal raw materials, have been greatly decreased recently, which means that inventory and finished products are shrinking for enterprises."

Compared with the same period last year, the price of stainless steel decreased by 20%. When the market was lowest last year, the sales price of the steel pipe after processing was 29 thousand yuan / ton, now it is only 24 thousand and 100 yuan / ton, and the price of embryo material comes in 21 thousand yuan / ton.

"Now the price of stainless steel material has dropped significantly, and even if my inventory has dropped from 100 million yuan to 90 million yuan, it will still shrink.

Shrinkage of raw materials is the biggest risk facing enterprises. What can we do without profit? "

Mr. Xie, general manager of a bedroom decorations Co., Ltd., Wenzhou, feels the same.

In May 30th, he told our reporter that the raw materials accounted for 60% of the total cost of raw materials in our bedding and decoration enterprises, and that of raw materials of cotton and wool increased by 10%. The price increase was not a big problem.

Fluctuations in raw materials, for the upstream enterprises, the biggest risk is the shrinkage of the stock. For downstream enterprises, it means sales profits are squeezed, and enterprises are facing small profits or losses.

Reporters learned in the interview that only the price fluctuations of raw materials are good enough to say that the key now is the superposition of a variety of cost factors, so that enterprises can hardly breathe.

Especially in some labor-intensive industries, such as clothing, shoemaking and related service industries, the impact of rising labor costs is more prominent.

{page_break}

Cai Chang, Zhang Wenjie and Yan Zhihui, three entrepreneurs in Guangzhou, told reporters in a collective interview that now we are facing not only the rising price of raw materials, but also the rise in taxes and wages.

The average worker's monthly salary is around 4000 yuan to 6000 yuan, nor is it low.

But skilled workers are more skilled workers, and the average monthly salary is 6000 yuan to 7000 yuan.

"Clothing enterprises are labor-intensive, the proportion of raw materials and wage costs is large, raw materials accounted for 55%, wages and other types of expenses accounted for 45%, of which only 30% of wage costs, and wages increased by 20% to 25% per year.

In addition, raw materials also rose by 30% to 50% or so, and a variety of costs superimposed on enterprises.

In May 30th, Xu Li, deputy general manager of Zhejiang Gao Shi Jie Clothing Co., Ltd., told our reporter that the enterprises were faced with the crisis of multiple cost superposition.

Fang Chonghai used "Besieged songs" to describe the difficulties of enterprises.

"What we are facing now is not only the rising cost of raw materials, the total cost of wages is about 20%, but the cost of labor increases by 15% to 20% per annum, in addition, the tax burden is heavy, the footwear value-added tax is 4.2%, the land tax and income tax are more than 7%, coupled with the high cost of financing, the industry is competing fiercely, and the selling price of products is low, almost everywhere.

Zhang Jiacheng, general manager of Shandong Jiacheng Software Technology Co., Ltd., also told reporters about the difficult situation of Shandong's small and micro enterprises.

"The difficulty of enterprise development lies in the increasing cost of manpower, property, water and electricity, circulation, taxation and so on, especially in the case of declining economic situation in recent two years."

In recent years, Shandong has continuously raised the minimum wage standard and the minimum social security standard. No matter how much wages the employees pay, the social security payment to the employees can not be less than sixty percent of the wages, the maximum can not exceed three times the wage, and no more than six thousand on the basis of three times.

So the labor cost of small and micro enterprises is the same as that of large and medium-sized enterprises.

At the same time, small and micro enterprises have little hope for their employees, resulting in higher labor costs.

In this way, the cost of small and micro enterprises is higher than that of large and medium-sized enterprises, but the profit rate is low, which makes the development of enterprises more difficult.

In the interview, reporters found that in a variety of cost factors, various taxes and fees also make enterprises overburdened.

In the evening of June 2nd, the chairman of a shoe industry Co., Ltd. of Wenzhou just went out to do the job and rushed to the interview.

He is a very optimistic person, talking about the survival of enterprises and shaking his head.

"It is becoming more and more difficult to do business now. Labor costs have risen by 20%. Last year, the annual salary of 25 thousand yuan has increased to 30 thousand yuan this year.

Raw materials account for 1/3 of the total cost, and domestic raw material prices continue to rise and profits are getting lower and lower.

If the price of raw materials is low or the price is not high, it will be necessary for capital to be purchased, and the capital of the enterprises will be limited, the raw materials will become more, the capital pressure will be too great, and the price will suddenly rise and fall. Who will dare to take cash into the stock of raw materials? Now all enterprises are going to save their lives and take a step by step.

When it comes to tax burden, he is more angry.

"You know what I am busy with today, and bring an accountant to the Inland Revenue Department to make up more than ten thousand yuan extra tax.

Because many enterprises have been closed down this year, the tasks stipulated by the Local Taxation Bureau can not be completed. Let us still have more points to be worked out by the enterprises that have not yet gone bankrupt, so as to help them complete their tasks.

Since the tax department has opened up, we dare not pay, otherwise they will come to tax inspection, and then they must not give money to them. Why should they not drink wine or drink?

Jiang Bingze, deputy general manager of Taizhou Yong RI children's products Co., Ltd., told reporters that no one in Huangyan has a heavy burden. It is higher than Wenling and Luqiao, with a tax rate of 4.3%, 4.4% and 4.5%.

In addition to the cost of raw materials, labor and tax, some enterprises that are involved in circulation are also deeply worried about the cost of circulation.

A boss in Zibo reflects that the cost of property circulation is one thousand or two thousand yuan, even the 1/3 of the price.

{page_break}

Yu Jitao, chairman of Shandong Zhong Sen Building Materials Technology Co. Ltd., said that our circulation cost is very high, which accounts for fifteen percent of total cost, which includes freight pportation cost and personnel cost.

Hu Hailong, marketing director of Taizhou Huangyan Hai Rui electronics plastic factory, told reporters about the terminal cost of commercial circulation, with a face of helplessness.

"For our enterprises, the biggest cost is the terminal sales window entry fee."

Now the terminal sales window is too strong. Some big supermarkets are located in China. They monopolize the terminal market and have a great impact on the entry of our products. The products enter the supermarket and we need to give kickbacks to the supermarket at 50% of the retail price.

"Only the cost of raw materials and terminal facade can not bear us, let alone labor, taxes and so on, and now production enterprises are almost unprofitable."

Reporters also felt the difficulties of the service industry during their visits.

Shandong ancient city merchants are mainly engaged in the service industry. They generally reflect the situation of high rent, high electricity price, high tax burden, difficult employees and low profits.

Yang Sihai, chairman of Yang Ning group, said that the operation of the hotel is better than the previous two years.

The problem is that the service industry is not big. The biggest problem is the difficulty of recruiting people.

In addition, labor costs, electricity prices and taxes are too high, and the rents of shops are rising every year.

Zhang Lei, general manager of the courtyard, complained to reporters about similar problems: "one year's operation, but the profit is not high. Now prices, electricity prices, housing prices are high, resulting in high operating costs."

The cost of manpower and raw materials is rising, which makes the catering enterprises "hard to step up".

In early April of this year, nearly 30 provinces and municipalities catering industry association responsible person gathered in Chengdu, jointly called for lower business tax, credit card fees.

Low cost operation mode no longer exists

The rising pressure on the survival of small and micro enterprises seems to be an irreversible fact, and this is a problem that small and micro enterprises are still struggling with, which inevitably leads to an increase in inventory, orders and profits, until the crisis of survival.

From the survey of the newspaper investigation team, this region has shown this trend to varying degrees since this year.

Huang Donghong, director of the SME Bureau of Hunan Province, told reporters that the growth rate of SMEs in Hunan province dropped by 2.8 percentage points from the first quarter of this year.

The small and medium-sized enterprises that have real production and operation conditions are only about 25%. About half of them are small and medium-sized enterprises. They feel that production efficiency has declined in the first quarter of this year, inventories have increased, and orders have decreased and profits have declined.

Ruian is a strong industrial city in Wenzhou, Zhejiang. In May 30th, Jin Shaolong, director of Ruian Bureau of letters and information, briefed reporters about the economic operation of Ruian, pointing out that "the industrial output value shows signs of hard recovery, but the foundation is not solid. Whether it can be better is hard to say because there are too many uncertainties."

When it comes to the profit situation of enterprises, Kim Shau long described this: "the overall situation of corporate profits continued to fall, the growth rate narrowed, the negative growth of 47.2% from 1 to February, the negative growth of 33.5% from 1 to March, and the negative growth of 25.1% from 1 to April.

Profits are narrowing and businesses are almost unprofitable.

Now most enterprises are mainly focused on stabilizing the market, protecting customers and making no profit.

According to Kim's analysis, labor costs increase by about 15% a year in a number of enterprises' costs. This trend is irreversible. Enterprises should not expect to drop. In the past, labor costs were mainly supported by cheap labor.

In addition, the cost of financing is the main cost, accounting for about half of the profits of enterprises.

Dr. Tang Jiqiang, director of the Development Planning Bureau of Chengdu hi tech Development Zone, Sichuan, is an expert who has long been concerned about and studied the development of small and medium sized enterprises.

In an interview with reporters, he pointed out sharply: "the cost of labor is a representation. The labor cost we can calculate today is tangible cost, and there are many intangible costs.

Wages seem to be understood as labor costs, but labor costs are far more than wages. "

Reporters from Tang Jiqiang's remarks, it is not difficult to find that raw materials, labor, tax burden and so on are still tangible costs. The intangible cost of budget is also devouring the profits of enterprises and squeezing the living space.

For the cost pressures faced by enterprises, in May 28th, Zhou Dewen, vice president of the National Association of small and medium enterprises and President of Wenzhou Association of small and medium enterprises, made an analysis in this interview: raw materials are rising fiercely, almost all industries have different prices of raw materials, but different industries are increasing differently.

The cost of raw materials accounts for a large proportion, which has great impact on enterprises.

Pushing up the price of materials on plateau is related to charges in various areas of circulation.

In addition, the labor cost increased by about 30% last year, and this year may increase. The increase in labor costs is irreversible. Under such circumstances, some enterprises still can not recruit workers.

At the same time, Zhou Dewen also stressed that the pressure of tax burden is large, and the average profit of enterprises is only 1% - 3%.

The tax burden increases by 30% to 40% per year, forcing the enterprise to die.

Coupled with administrative charges, the government's more than 30 departments, more than 70 charges, enterprises are miserable.

Bank profits, corporate loans to banks comprehensive monthly interest rate of 1.2 points, is close to private lending.

"The appreciation of the renminbi, the rise in the prices of production materials and raw materials, and the rising cost of labor force the enterprises.

All of them have eaten up. High fees, high interest rates and high taxes have depressed enterprises, and the cost of coastal areas is higher. Most of them are resource dependent, and the fate of small and micro enterprises is deplorable.

Zhou Dewen has made similar appeals for small and micro businesses more than once.